German Firm RWE Set For $6.8B Buy of Con Edison Renewables Unit

Abstract

German energy developer RWE will purchase New York City-based utility Consolidated Edison's clean energy business for $6.8 billion, subject to approvals-providing a pipeline to construction of 24 GW of onshore wind, solar and battery storage projects that it says will add to about $15.3 billon of renewables business investments it reports in the U.S."The acquisition of Con Edison Clean Energy Businesses is a major boost for RWE's green expansion in the U.S., one of the most attractive and fastest growing markets for renewable energy," Markus Krebber, RWE's CEO, said in a statement. Once completed, RWE will be the fourth largest renewable energy company in the U.S, and the second largest solar project operator, the company said. Investor-owned utility American Electric Power plans to invest in its regulated businesses, said the Cleveland-based company on Oct. 4.While the firm, which operates in 11 states, plans to invest $9 billion in regulated renewable energy for its utility ratepayers, it also plans to sell its unregulated renewables assets in a transaction set to close in the second quarter of 2023.Bids are due this month for the unregulated wind and solar projects. The company plans a $40-billion capital investment through 2027 that also includes distributed energy and transmission. Duke Energy said in August that it would look for potential buyers for its unregulated renewable energy portfolio in favor of investing in renewable projects that earn a regulated rate of return. Earnings from its commercial renewable energy business was flat, which prompted Duke to begin a strategic review of the portfolio, the company said during its second-quarter earnings call on Aug. 4. An activist RWE investor that owns about 1 million shares of the firm criticized the pending Con Ed transaction, during the biggest energy crisis Germany has ever seen.